Automotive classifieds company CarTrade has raised Rs 321 crore ($42.5 million) from two of its existing investors Temasek Holdings and Warburg Pincus in Series H funding round. The same was revealed via company’s regulatory filings. March Capital Partners will also be taking part in the investment round
The online auto classifieds platform for used and new cars had been in touch with said firms already, when it raised Rs 370 crore in a funding round iback n 2017, which was led by Temasek Holdings and a US family office. Prior to that, the CarTrade had secured 950 crore ($145 million then) in January 2016 from Temasek Holdings, US-based March Capital and equity firm Warburg Pincus.
Now, the three firms, i.e. Temasek Holdings, Warburg Pincus, and March Capital Partners will each be investing Rs 107.2 crore. The platform has been valued at Rs 3,930.3 crore ($525 million), a 35% jump from when it raised Rs 242.3 crore from Temasek Holdings in the funding round in 2017.
With this trade, Warburg Pincus has become the majority stakeholder in the company, holding 34.74% stake worth Rs 1,365.6 crore ($182.1 million). Temasek Holdings isn’t very far behind, as it will also bag about 26.7% stake in the Mumbai-based firm, with the total value of its share being estimated at about Rs 1,050 crore ($140 million).
The platform serves as a bridge between buyers and sellers of automobiles, and has also added the ability to purchase new 4 wheelers directly from the portal. The company claims that over 2.5 million used car buyers visit their site every month looking for a used car. It also provides certification for used cars, so customers can be assured of the quality of their purchase. “It involves a detailed 139-point inspection done by a team of CarTrade.com engineers,” CarTrade’s website reads.
CarTrade reported net sales of Rs 243.2 crore for 2018-19, the year it achieved operational breakeven. Compared to the Rs 123.5 crore an year ago, the platform is sketching an exceptional trajectory, justifying the sudden jump in its valuation.
In a saturated market, where CarTrade is competing with the likes of Car Dekho, Cars24 and Droom, the new capital will go a long way. However, with the coronavirus pandemic at large, not many people are buying cars, new or second hand. Thus, at a time like this, the capital may as well be used to survive, rather than grow.